<PAGE>
[LOGO]
GT GLOBAL DOLLAR FUND
Fifty California Street, 27th Floor
San Francisco, California 94111
General Telephone No. 415/392-6181
General Fund Information 800/824-1580
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REPORT FROM THE FUND MANAGER
The GT Global Dollar Fund's investment objective is to maximize current
income consistent with liquidity and conservation of capital.
The Fund's total return for the 12 months ended December 31, 1995, was 5.08%
for Class A shares and 4.29% for Class B shares. As of December 31, 1995, the
Fund's SEC seven-day yield was 4.81% for Class A shares and 4.07% for Class B
shares. Because it invests only in short-term debt obligations with remaining
maturities of 13 months or less, the Fund's performance generally reflects the
level of short-term interest rates.
In 1995 we witnessed the end of a tightening cycle and a turn towards
declining interest rates, as economic growth moderated to sustainable levels and
inflationary expectations declined significantly. Over the past 12 months, the
Federal Funds Rate fell from 6.00% in February 1995, to 5.50% at the end of
December 1995, confirming market expectations of easing monetary conditions. At
mid-January 1996, the market seemed to indicate that further easing could be
expected in the year if a Federal budget agreement capable of reducing the
fiscal deficit could be reached.
However, we believe that current economic signals are strong enough to
indicate a slowdown in the U.S. economy and warrant further cuts in the Fed
Funds Rate, regardless of what happens to the budget. With this in mind, the
Fund intends to invest a portion of its holdings in longer short-term
instruments to lock in yields. A large portion of assets, however, will be held
in instruments with remaining maturities under 30 days, due to the high
liquidity requirement of the Fund.
The Fund's strategy remains conservative. Accordingly, we continue to invest
in commercial paper of large issuers, rated in the highest categories by S&P or
Moody's, or of equivalent quality, and U.S. Treasury and Agency obligations.
<TABLE>
<S> <C>
JEFF GORMAN
PORTFOLIO MANAGER
SAN FRANCISCO
</TABLE>
JANUARY 16, 1996
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REPORT OF INDEPENDENT ACCOUNTANTS
TO THE SHAREHOLDERS AND
BOARD OF DIRECTORS OF
GT INVESTMENT PORTFOLIOS, INC.:
We have audited the accompanying statement of assets and liabilities of GT
Global Dollar Fund, a series of shares of common stock of GT Investment
Portfolios, Inc., including the schedule of portfolio investments, as of
December 31, 1995, the related statement of operations for the year then ended,
the statements of changes in net assets for each of the two years in the period
then ended and the financial highlights for each of the four years in the period
then ended. These financial statements and the financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and the financial highlights based on our
audits. The financial highlights for the year ended December 31, 1991 were
audited by other auditors whose report dated January 31, 1992 expressed an
unqualified opinion on such financial highlights.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and the financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1995 by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and the financial highlights
referred to above present fairly, in all material respects, the financial
position of GT Global Dollar Fund as of December 31, 1995, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended and the financial highlights for each of
the four years in the period then ended, in conformity with generally accepted
accounting principles.
Coopers & Lybrand, L.L.P.
Boston, Massachusetts
February 12, 1996
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<PAGE>
GT GLOBAL DOLLAR FUND
PORTFOLIO OF INVESTMENTS
December 31, 1995
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<TABLE>
<CAPTION>
MATURITY PRINCIPAL MARKET
SHORT-TERM INVESTMENTS YIELD DATE AMOUNT VALUE
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<S> <C> <C> <C> <C>
Commercial Paper - Discounted (50.9%)
AIG Funding Inc. .............................................................. 5.77% 08-Jan-96 $14,400,000 $ 14,383,900
E.I. DuPont de Nemours & Co. .................................................. 5.78% 12-Jan-96 14,400,000 14,374,656
Minnesota Mining & Manufacturing Co. .......................................... 5.70% 19-Jan-96 14,250,000 14,209,886
PHH Corp ...................................................................... 5.77% 26-Jan-96 14,250,000 14,193,792
Ford Motor Credit Co. ......................................................... 5.78% 05-Jan-96 13,250,000 13,241,564
Toronto Dominion Holdings USA, Inc. ........................................... 5.72% 24-Jan-96 12,400,000 12,355,556
Procter & Gamble Co. .......................................................... 5.66% 13-Feb-96 12,000,000 11,919,733
AT&T Corp. .................................................................... 5.79% 05-Jan-96 9,500,000 9,493,899
Philip Morris Cos., Inc. ...................................................... 5.91% 05-Jan-96 9,500,000 9,493,772
Bellsouth Capital Funding Corp. ............................................... 5.66% 09-Jan-96 9,500,000 9,488,072
General Electric Capital Corp. ................................................ 5.72% 12-Feb-96 9,000,000 8,940,780
Hanson Finance PLC ............................................................ 5.80% 17-Jan-96 8,900,000 8,877,453
Ameritech Corp. ............................................................... 5.62% 09-Feb-96 3,390,000 3,369,510
Merrill Lynch & Co., Inc. ..................................................... 5.86% 04-Jan-96 1,263,000 1,262,384
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Total Commercial Paper - Discounted
(amortized cost $145,604,957) .................................................. 145,604,957
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Government & Government Agency Obligations (15.8%)
Federal National Mortgage Association ......................................... 5.60% 20-Sep-96 14,400,000 14,385,942
Sallie Mae .................................................................... 5.20% 19-Jul-96 12,400,000 12,390,700
Federal Home Loan Mortgage Corp. .............................................. 5.42% 12-Mar-96 12,000,000 11,871,727
Federal Home Loan Bank ........................................................ 5.76% 02-Oct-96 6,000,000 5,995,774
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Total Government & Government Agency Obligations (amortized cost $44,644,143).... 44,644,143
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<CAPTION>
PRINCIPAL MARKET
REPURCHASE AGREEMENTS AMOUNT VALUE
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<S> <C> <C> <C> <C>
Dated December 29, 1995, with State Street Bank & Trust Company,due January 2,
1996, for an effective yield of 5.55%, collateralized by $67,910,000 U.S.
Treasury Note, 6.00% due 8/31/97 (market value of collateral is $70,092,688,
including accrued interest). (cost $68,726,771) .............................. 68,726,771
Dated December 29, 1995, with Merrill Lynch, due January 2, 1996, for an
effective yield of 5.60%, collateralized by $50,185,000 U.S. Treasury Note,
5.625% due 10/31/97 (market value of collateral is $51,042,298, including
accrued interest). (cost $50,023,333) ....................................... 50,023,333
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TOTAL REPURCHASE AGREEMENTS (cost $118,750,104) ................................. 118,750,104
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TOTAL SHORT-TERM INVESTMENTS (cost $308,999,204)* ............................... 308,999,204
Other Assets and Liabilities .................................................... (23,991,713)
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NET ASSETS ...................................................................... $285,007,491
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<CAPTION>
% OF NET
SHORT-TERM INVESTMENTS ASSETS {D}
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<S> <C>
Commercial Paper - Discounted (50.9%)
AIG Funding Inc. .............................................................. 5.1
E.I. DuPont de Nemours & Co. .................................................. 5.0
Minnesota Mining & Manufacturing Co. .......................................... 5.0
PHH Corp ...................................................................... 5.0
Ford Motor Credit Co. ......................................................... 4.6
Toronto Dominion Holdings USA, Inc. ........................................... 4.3
Procter & Gamble Co. .......................................................... 4.2
AT&T Corp. .................................................................... 3.3
Philip Morris Cos., Inc. ...................................................... 3.3
Bellsouth Capital Funding Corp. ............................................... 3.3
General Electric Capital Corp. ................................................ 3.1
Hanson Finance PLC ............................................................ 3.1
Ameritech Corp. ............................................................... 1.2
Merrill Lynch & Co., Inc. ..................................................... 0.4
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Total Commercial Paper - Discounted
(amortized cost $145,604,957) .................................................. 50.9
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Government & Government Agency Obligations (15.8%)
Federal National Mortgage Association ......................................... 5.1
Sallie Mae .................................................................... 4.4
Federal Home Loan Mortgage Corp. .............................................. 4.2
Federal Home Loan Bank ........................................................ 2.1
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Total Government & Government Agency Obligations (amortized cost $44,644,143).... 15.8
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% OF NET
REPURCHASE AGREEMENTS ASSETS {D}
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<S> <C>
Dated December 29, 1995, with State Street Bank & Trust Company,due January 2,
1996, for an effective yield of 5.55%, collateralized by $67,910,000 U.S.
Treasury Note, 6.00% due 8/31/97 (market value of collateral is $70,092,688,
including accrued interest). (cost $68,726,771) .............................. 24.1
Dated December 29, 1995, with Merrill Lynch, due January 2, 1996, for an
effective yield of 5.60%, collateralized by $50,185,000 U.S. Treasury Note,
5.625% due 10/31/97 (market value of collateral is $51,042,298, including
accrued interest). (cost $50,023,333) ....................................... 17.6
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TOTAL REPURCHASE AGREEMENTS (cost $118,750,104) ................................. 41.7
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TOTAL SHORT-TERM INVESTMENTS (cost $308,999,204)* ............................... 108.4
Other Assets and Liabilities .................................................... (8.4)
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NET ASSETS ...................................................................... 100.0
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</TABLE>
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{d} Percentages indicated are based on net assets of $285,007,491.
* For Federal income tax purposes, cost is $308,999,204.
The accompanying notes are an integral part of the financial statements.
F-2
<PAGE>
GT GLOBAL DOLLAR FUND
STATEMENT OF ASSETS
AND LIABILITIES
December 31, 1995
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<TABLE>
<S> <C>
Assets:
Investments in securities, at value (amortized
cost $190,249,100) (Note 1)...................... $190,249,100
Repurchase agreements, at value and cost (Note
1)............................................... 118,750,104
U.S. currency..................................... 120,007
Receivable for Fund shares sold................... 23,487,618
Interest receivable............................... 452,998
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Total assets.................................... 333,059,827
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Liabilities:
Payable for Fund shares repurchased............... 47,537,243
Distribution payable.............................. 137,794
Payable for investment management and
administration fees (Note 2)..................... 135,110
Payable for printing and postage expenses......... 74,962
Payable for transfer agent fees (Note 2).......... 67,712
Payable for service and distribution expenses
(Note 2)......................................... 67,165
Payable for professional fees..................... 19,088
Payable for fund accounting fees (Note 2)......... 6,672
Payable for registration and filing fees.......... 3,497
Payable for custodian fees........................ 1,838
Payable for Directors' fees and expenses (Note
2)............................................... 1,255
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Total liabilities............................... 48,052,336
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Net assets.......................................... $285,007,491
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Class A:
Net asset value and redemption price per share
($183,766,837 DIVIDED BY 183,794,106 shares
outstanding)....................................... $ 1.00
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Class B:+
Net asset value and offering price per share
($99,150,908 DIVIDED BY 99,151,671 shares
outstanding)....................................... $ 1.00
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Advisor Class:
Net asset value, offering price per share, and
redemption price per share
($2,089,746 DIVIDED BY 2,080,151 shares
outstanding)....................................... $ 1.00
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Net assets: At December 31, 1995, net assets
consisted of paid-in capital of $285,007,491.
<FN>
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+ Redemption price per share is equal to the net asset value per share less
any applicable contingent deferred sales charge.
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-3
<PAGE>
GT GLOBAL DOLLAR FUND
STATEMENT OF OPERATIONS
Year ended December 31, 1995
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<TABLE>
<S> <C> <C>
Investment income: (Note 1)
Interest income........................................... $19,720,237
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Expenses:
Investment management and administration fees (Note 2).... 1,665,299
Service and distribution expenses: (Note 2)
Class A.................................. $ 573,163
Class B.................................. 1,026,630 1,599,793
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Transfer agent fees (Note 2).............................. 935,216
Registration and filing fees.............................. 376,015
Printing and postage expenses............................. 145,535
Fund accounting fees (Note 2)............................. 86,710
Custodian fees (Note 4)................................... 43,228
Legal fees................................................ 31,280
Audit fees................................................ 24,277
Directors' fees and expenses (Note 2)..................... 16,960
Insurance expenses........................................ 5,555
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Total expenses before reimbursement....................... 4,929,868
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Expenses waived by LGT Asset Management, Inc. (Note
2).......................................................... (829,866)
Expense reductions (Note 4)............................. (88,704)
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Total net expenses........................................ 4,011,298
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Net investment income....................................... 15,708,939
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Net increase in net assets resulting from operations........ $15,708,939
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</TABLE>
The accompanying notes are an integral part of the financial statements.
F-4
<PAGE>
GT GLOBAL DOLLAR FUND
STATEMENT OF CHANGES IN NET ASSETS
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<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
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<S> <C> <C>
Increase (Decrease) in net assets
Operations:
Net investment income...................... $ 15,708,939 $ 9,172,741
Net realized gain on investments and
foreign currency transactions............. -- 2,228
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Net increase in net assets resulting from
operations.............................. 15,708,939 9,174,969
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Class A:
Distributions to shareholders: (Note 1)
From net investment income................. (11,346,132) (7,423,289)
Class B:
Distributions to shareholders: (Note 1)
From net investment income................. (4,308,505) (1,749,452)
Advisor Class: (Note 1)
Distributions to shareholders:
From net investment income................. (54,302) --
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Total distributions.................... (15,708,939) (9,172,741)
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Capital share transactions: (Note 3)
Increase from capital shares sold and
reinvested................................ 9,659,790,290 5,479,251,663
Decrease from capital shares repurchased... (9,805,577,211) (5,139,759,248)
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Net increase (decrease) from capital
share transactions...................... (145,786,921) 339,492,415
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Total increase (decrease) in net
assets................................ (145,786,921) 339,494,643
Net assets:
Beginning of year.......................... 430,794,412 91,299,769
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End of year................................ $ 285,007,491 $ 430,794,412
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</TABLE>
The accompanying notes are an integral part of the financial statements.
F-5
<PAGE>
GT GLOBAL DOLLAR FUND
FINANCIAL HIGHLIGHTS
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Contained below is per share operating performance data for a share outstanding
throughout each period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
CLASS A+
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YEAR ENDED DECEMBER 31,
--------------------------------------------------------------------
1995 1994 1993 1992 1991
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Net investment income................... 0.050 0.032 0.022 0.028 0.051
Distributions from net investment
income................................. (0.050) (0.032) (0.022) (0.028) (0.051)
------------ ------------ ------------ ------------ ------------
Net asset value (unchanged during the
period)................................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------
Total investment return (a)......... 5.08% 3.30% 2.2% 2.8% 5.1%
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 183,761 $ 320,858 $ 87,822 $ 81,674 $ 70,295
Ratio of net investment income to
average net assets:
With expense waivers and
reductions (b)
(Notes 2 & 4)........................ 4.94% 3.40% 2.17% 2.78% 5.10%
Without expense waivers and
reductions (b)....................... 4.66% 3.15% 1.46% 2.47% 4.90%
Ratio of expenses to average net assets:
With expense waivers and
reductions (b)
(Notes 2 & 4)........................ 0.97% 0.92% 1.00% 1.25% 1.25%
Without expense waivers and
reductions (b)....................... 1.25% 1.17% 1.72% 1.56% 1.45%
</TABLE>
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+ All capital shares issued and outstanding as of March 31, 1993 were
reclassified as Class A shares.
++ Commencing April 1, 1993, the Fund began offering Class B shares.
+++ Commencing June 1, 1995, the Fund began offering Advisor Class shares.
(a) Not annualized for periods of less than one year.
(b) Annualized for periods of less than one year.
The accompanying notes are an integral part of the financial statements.
F-6
<PAGE>
GT GLOBAL DOLLAR FUND
FINANCIAL HIGHLIGHTS (CONT'D)
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Contained below is per share operating performance data for a share outstanding
throughout each period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
ADVISOR
CLASS B++ CLASS+++
---------------------------------------- -------------
APRIL 1, 1993 JUNE 1, 1995
YEAR ENDED DECEMBER 31, TO TO
------------------------- DECEMBER 31, DECEMBER 31,
1995 1994 1993 1995
---------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Net investment income................... 0.040 0.025 0.010 0.030
Distributions from net investment
income................................. (0.040) (0.025) (0.010) (0.030)
---------- ------------- ------------- -------------
Net asset value (unchanged during the
period)................................ $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ------------- ------------- -------------
---------- ------------- ------------- -------------
Total investment return (a)......... 4.29% 2.53% 1.4% 2.92%
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 99,151 $ 109,936 $ 3,478 $ 2,096
Ratio of net investment income to
average net assets:
With expense waivers and
reductions (b)
(Notes 2 & 4)........................ 4.19% 2.65% 1.42% 4.94%
Without expense waivers and
reductions (b)....................... 3.91% 2.40% 0.86% 4.91%
Ratio of expenses to average net assets:
With expense waivers and
reductions (b)
(Notes 2 & 4)........................ 1.72% 1.67% 1.75% 0.97%
Without expense waivers and
reductions (b)....................... 2.00% 1.92% 2.31% 1.00%
</TABLE>
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+ All capital shares issued and outstanding as of March 31, 1993 were
reclassified as Class A shares.
++ Commencing April 1, 1993, the Fund began offering Class B shares.
+++ Commencing June 1, 1995, the Fund began offering Advisor Class shares.
(a) Not annualized for periods of less than one year.
(b) Annualized for periods of less than one year.
The accompanying notes are an integral part of the financial statements.
F-7
<PAGE>
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GT GLOBAL DOLLAR FUND
NOTES TO FINANCIAL STATEMENTS -- December 31, 1995
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1. SIGNIFICANT ACCOUNTING POLICIES
GT Global Dollar Fund ("Fund") is a diversified series of GT Investment
Portfolios, Inc. ("Company"). The Company is registered under the Investment
Company Act of 1940, as amended (1940 Act), as an open-end management
investment company.
The Fund offers Class A, Class B, and Advisor Class shares, each of which
has equal rights as to assets and voting privileges. Each class has exclusive
voting rights with respect to its distribution plan. The Fund commenced sale
of Advisor Class shares on June 1, 1995. Investment income, realized and
unrealized capital gains and losses, and the common expenses of the Fund are
allocated on a pro rata basis to each class based on the relative net assets
of each class to the total net assets of the Fund. Each class of shares
differs in its respective distribution expenses, and may differ in its
transfer agent, registration, and certain other class-specific fees and
expenses.
The following is a summary of significant accounting policies followed by
the Fund in the preparation of its financial statements. The policies are in
conformity with generally accepted accounting principles.
A. PORTFOLIO VALUATION
Securities are valued at amortized cost, which approximates market value.
B. FEDERAL INCOME TAXES
It is the policy of the Fund to meet the requirements for qualification as
a "regulated investment company" under the Internal Revenue Code of 1986, as
amended ("Code"). It is also the intention of the Fund to make distributions
sufficient to avoid imposition of any excise tax under Section 4982 of the
Code. Therefore, no provision has been made for Federal taxes on income,
capital gains, and unrealized appreciation of securities held, or for excise
tax on income and capital gains.
C. REPURCHASE AGREEMENTS
With respect to repurchase agreements entered into by the Fund, it is the
Fund's policy to always receive, as collateral, U.S. government securities or
other high quality debt securities of which the value, including accrued
interest, is at least equal to the amount to be repaid to the Fund under each
agreement at its maturity. LGT Asset Management, Inc. ("LGT", formerly known
as G.T. Capital Management, Inc.) is responsible for determining that the
value of these underlying securities remains at least equal to the resale
price.
D. OTHER
Security transactions are recorded on the trade date (date the order to buy
or sell is executed). Interest income is recorded on an accrual basis.
Dividends to shareholders from net investment income are declared daily and
paid or reinvested monthly.
2. RELATED PARTIES
LGT serves as the investment manager and administrator of the Fund. The
Fund pays LGT investment management and administration fees at the annualized
rate of 0.50% of the Fund's average daily net assets. These fees are computed
daily and paid monthly, and are subject to reduction in any year to the
extent that the Fund's expenses (exclusive of brokerage commissions, taxes,
interest, distribution-related expenses and extraordinary expenses) exceed
the most stringent limits prescribed by the laws or regulations of any state
in which the Fund's shares are sold.
GT Global, Inc. ("GT Global", formerly known as G.T. Capital Management,
Inc.), an affiliate of LGT, serves as the Fund's distributor. The Fund offers
Class A shares for purchase. Certain redemptions of Class A shares made
within two years of purchase are subject to contingent deferred sales charges
("CDSCs"), in accordance with the Fund's current prospectus. Class B shares
of the Fund are available only through an exchange of Class B shares of other
GT Global Mutual Funds. Certain redemptions of Class B shares made within six
years of purchase are also subject to CDSCs, in accordance with the Fund's
current prospectus. For the year ended December 31, 1995, GT Global collected
CDSCs in the amount of $1,333,734. In addition, GT Global may, from time to
time, make ongoing payments to brokerage firms, financial institutions
(including banks) and others that facilitate the administration and servicing
of shareholder accounts.
Pursuant to Rule 12b-1 under the 1940 Act, the Company's Board of Directors
has adopted separate distribution plans with respect to the Fund's Class A
shares ("Class A Plan") and Class B shares ("Class B Plan"), pursuant to
which the Fund reimburses GT Global for a portion of its shareholder
servicing and distribution expenses. Under the Class A Plan, the Fund may pay
GT Global a service fee at the annualized rate of up to 0.25% of the average
daily net assets of the Fund's Class A shares for GT Global's expenditures
incurred in servicing and maintaining shareholder accounts, and may pay GT
Global a distribution fee at the annualized rate of up to 0.25% of the
average daily net assets of the Fund's Class A shares less any amounts paid
by the Fund as the aforementioned service fee for GT Global's expenditures
incurred in providing services as distributor. GT Global does not currently
intend to seek reimbursement of any amounts under the Class A Plan. All
expenses for which GT Global is reimbursed under the Class A Plan will have
been incurred within one year of such reimbursement.
Pursuant to the Fund's Class B Plan, the Fund may pay GT Global a service
fee at the annualized rate of up to 0.25% of the average daily net assets of
the Fund's Class B shares for GT Global's expenditures incurred in servicing
and maintaining shareholder accounts, and may pay GT Global a distribution
fee at the annualized rate of up to 0.75% of the average daily net assets of
the Fund's Class B shares for GT Global's expenditures incurred in providing
services as distributor. GT Global does not currently intend to seek
reimbursement of any amounts in excess of 0.75% of average daily net assets
under the Class B Plan. Expenses incurred under the Class B Plan in excess of
1.00% annually may be carried forward for reimbursement in subsequent years
as long as that Plan continues in effect.
LGT and GT Global have voluntarily undertaken to limit the Fund's expenses
(exclusive of brokerage
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F-8
<PAGE>
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GT GLOBAL DOLLAR FUND
NOTES TO FINANCIAL STATEMENTS -- (Continued)
- --------------------------------------------------------------------------------
commissions, interest, taxes and extraordinary expenses) to the annual rate of
1.00%, 1.75%, and 1.00% of the average daily net assets of the Fund's Class
A, Class B, and Advisor Class shares, respectively. If necessary, this
limitation will be effected by waivers by LGT of its investment management
and administration fees, waivers by GT Global of payments under the Class A
Plan and/or Class B Plan and/or reimbursements by LGT or GT Global of
portions of the Fund's other operating expenses.
GT Global Investor Services, Inc. ("GT Services"), an affiliate of LGT and
GT Global, is the transfer agent for the Fund. For performing shareholder
servicing, reporting, and general transfer agent services, GT services
receives an annual maintenance fee of $17.50 per account, a new account fee
of $4.00 per account, a per transaction fee of $1.75 for all transactions
other than exchanges and a per exchange fee of $2.25. The Transfer Agent also
is reimbursed by the Fund for its out-of-pocket expenses for such items as
postage, forms, telephone charges, stationery and office supplies.
The Company pays each of its Directors who is not an employee, officer or
director of LGT, GT Global or GT Services $1,000 per year plus $300 for each
meeting of the board or any committee thereof attended by the Director.
Effective July 1, 1995, LGT has assumed the role of pricing and accounting
agent for the Fund. The monthly fee for these services to LGT is a
percentage, not to exceed 0.03% annually, of the Fund's average daily net
assets. The annual fee rate is derived by applying 0.03% to the first $5
billion of assets of all registered mutual funds advised by LGT ("GT Funds")
and 0.02% to the assets in excess of $5 billion and dividing the result by
the aggregated assets of the GT Funds. For the period ended December 31,
1995, the Fund paid fund accounting fees of $34,482 to LGT.
3. CAPITAL SHARES
At December 31, 1995, there were 2,000,000,000 shares of the Company's
common stock authorized, at $0.001 per share. Of this number, 1,500,000,000
shares have been classified as shares of the Fund; 500 million shares have
been classified as Class A shares, 500 million have been classified as Class
B shares, and 500 million have been classified as Advisor Class shares. These
amounts may be increased from time to time at the discretion of the Board of
Directors. Transactions in capital shares of the Fund were as follows:
CAPITAL SHARE TRANSACTIONS
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
------------------ ------------------
SHARES & AMOUNT SHARES & AMOUNT
------------------ ------------------
<S> <C> <C>
CLASS A:
Shares sold.......................................................................... 8,377,131,000 4,869,818,720
Shares issued in connection with reinvestment of distributions....................... 9,256,942 6,725,406
------------------ ------------------
8,386,387,942 4,876,544,126
Shares repurchased................................................................... (8,523,474,325) (4,643,506,545)
------------------ ------------------
Net increase (decrease).............................................................. (137,086,383) 233,037,581
------------------ ------------------
------------------ ------------------
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
------------------ ------------------
SHARES & AMOUNT SHARES & AMOUNT
------------------ ------------------
<S> <C> <C>
CLASS B:
Shares sold.......................................................................... 1,264,724,918 601,281,318
Shares issued in connection with reinvestment of distributions....................... 3,247,874 1,426,219
------------------ ------------------
1,267,972,792 602,707,537
Shares repurchased................................................................... (1,278,753,481) (496,252,703)
------------------ ------------------
Net increase (decrease).............................................................. (10,780,689) 106,454,834
------------------ ------------------
------------------ ------------------
</TABLE>
<TABLE>
<CAPTION>
JUNE 1, 1995
(COMMENCEMENT
OF SALE OF SHARES)
TO DECEMBER 31, 1995
---------------------
SHARES & AMOUNT
---------------------
<S> <C> <C>
ADVISOR CLASS:
Shares sold........................................................................ 5,375,327
Shares issued in connection with reinvestment of distributions..................... 54,229
---------------------
5,429,556
Shares repurchased................................................................. (3,349,405)
---------------------
Net increase....................................................................... 2,080,151
---------------------
---------------------
</TABLE>
4. EXPENSE REDUCTIONS
For the year ended December 31, 1995, the Fund's custody fees were offset by
$88,704 of credits on cash held at the custodian.
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F-9
<PAGE>
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GT GLOBAL DOLLAR FUND
NOTES
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